Consumer preferences for electric vehicles in lower tier cities of China: Evidences from south Jiangsu region

China is the world biggest market of electric vehicles (EVs) in terms of production and sales. Existing studies on consumer preferences for EVs in China have generally focused on first-tier cities, while little attention has been paid to the lower tier cities. This exploratory study investigates consumer preferences for EVs in lower tier cities of China, by collecting stated preference (SP) data in two second-tier cities and three third-tier cities in the south Jiangsu region of China. The discrete choice modeling analysis shows that Chinese consumers in lower-tier cities are generally sensitive to monetary attributes, charging service and driving range of EVs. They also perceive Chinese vehicle brands to be disadvantaged compared with European brands. When comparing the differences in second-tier versus third-tier cities, we find that consumers in third-tier cities are more sensitive to purchase price, subsidy of purchase, and coverage of charging stations than their second-tier counterparts. This study also highlights the role of different psychological effects, such as symbols of car ownership, normative-face influence, and risk aversion, in shaping consumer preferences for EVs in lower-tier cities of China. Our results provide important implications for contextualizing government policies and marketing strategies in line with the different sizes and characteristics of the cities in China.     

Consumer purchase intentions for electric vehicles: Is green more important than price and range?

In view of global warming and climate change, a transition from combustion to electric vehicles (EVs) can help to reduce greenhouse gas emissions and improve air quality. However, high acquisition costs and short driving ranges are considered to be main factors which impede the diffusion of EVs. Since electricity needs to be produced from renewable energy sources for EVs to be a true green alternative, the environmental performance of EVs is also presumed to be an important factor. This paper investigates the role of environmental performance compared to price value and range confidence regarding consumer purchase intentions for EVs. To develop our hypothesis, we interview 40 end-user subjects about their beliefs toward EVs. Then, we perform 167 test drives with a plug-in battery EV and conduct a survey with the participants to test the hypothesis. Results of a structural equation modeling support the hypothesis that the environmental performance of EVs is a stronger predictor of attitude and thus purchase intention than price value and range confidence.     

Forecasting electricity demand of electric vehicles by analyzing consumers’ charging patterns

The spread of electric vehicles (EVs) and their increasing demand for electricity has placed a greater burden on electricity generation and the power grid. In particular, the problem of whether to expand the electricity power stations and distribution facilities due to the construction of EV charging stations is emerging as an immediate issue. To effectively meet the demand for additional electricity while ensuring the stability of the power grid, there is a need to accurately predict the charging demands for EVs. Therefore, this study estimates the changes in electricity charging demand based on consumer preferences for EVs, charging time of day, and types of electric vehicle supply equipment (EVSE) and elucidates the matters to be considered for constructing EV infrastructure. The results show that consumers mainly preferred charging during the evening. However, when we considered different types of EVSEs (public and private) in the analysis, people preferred to charge at public EVSEs during the day. During peak load time, people tended to prefer charging using fast public EVSEs, which shows that consumers considered the tradeoffs between the full charge time and the price for charging. Based on these findings, this study provides key political implications for policy makers to consider in taking preemptive measures to adjust the electricity supply infrastructure.     

Electric vehicles and residential parking in an urban environment: Results from a stated preference experiment

This paper presents the results of a preference survey of 1545 respondents’ willingness to purchase electric vehicles (EVs) in Philadelphia. We pay particular attention to respondents’ willingness to pay for convenient charging systems and parking spaces. If the value of dedicated parking substantially outweighs the value of convenient charging systems, residential-based on-street charging systems are unlikely to ever be politically palatable. As expected, respondents are generally willing to pay for longer range, shorter charging times, lower operating costs, and shorter parking search times. For a typical respondent, a $100 per month parking charge decreases the odds of purchasing an EV by around 65%. Across mixed logit and latent class models, we find substantial variation in the willingness to pay for EV range, charge time, and ease of parking. Of note, we find two primary classes of respondents with substantially different EV preferences. The first class tends to live in multifamily housing units in central parts of the city and puts a high value on parking search time and the availability of on-street charging stations. The second class, whose members are likelier to be married, wealthy, conservative, and residing in single-family homes in more distant neighborhoods, are willing to pay more for EV range and charge time, but less for parking than the first group. They are also much likelier to consider purchasing EVs at all. We recommend that future research into EV adoption incorporate neighborhood-level features, like parking availability and average trip distances, which vary by neighborhood and almost certainly influence EV adoption.     

Testing electric vehicle demand in ‘hybrid households’ using a reflexive survey

The debate over electric vehicles (EVs) pivots largely on issues of market demand: will consumers purchase a vehicle that provides substantially less driving range, yet can be refueled at home, than an otherwise comparable gasoline vehicle? Also, what role do other unique attributes of EVs play in the purchase decision? Most previous studies find that limited driving range is a serious market barrier; many of those same studies ignore or under-value other novel attributes. To probe these future consumer decision processes deeply and robustly, we first devised and conducted detailed, interactive and experiment-oriented interviews. Then, incorporating what we learned, we designed an innovative mail survey and administered it to 454 multi-car households in California. The four-stage mail survey included a video of EV use and recharging and other informational material, completion of a 3-day trip diary and map of activity locations, and vehicle choice experiments. In addition to propulsion systems, respondents made choices of body styles, driving ranges, and other features. We formalized and tested what we call the hybrid household hypothesis: households who choose EVs will be purposefully diversifying their vehicle holdings to achieve the unique advantages of different propulsion systems. The hypothesis is supported, given the assumptions in our experimental design. In fact, a significantly larger number of EVs are chosen than the minimum number that would support our hypothesis. We find that purchases of battery-powered EVs by hybrid households would account for between 7 and 18% of annual light duty vehicle sales in California. EVs sold to fleets and other households would be in addition to those identified by this study.     

Market dynamics and indirect network effects in electric vehicle diffusion

The diffusion of electric vehicles (EVs) is studied in a two-sided market framework consisting of EVs on the one side and EV charging stations (EVCSs) on the other. A sequential game is introduced as a model for the interactions between an EVCS investor and EV consumers. A consumer chooses to purchase an EV or a conventional gasoline alternative based on the upfront costs of purchase, the future operating costs, and the availability of charging stations. The investor, on the other hand, maximizes his profit by deciding whether to build charging facilities at a set of potential EVCS sites or to defer his investments.The solution of the sequential game characterizes the EV-EVCS market equilibrium. The market solution is compared with that of a social planner who invests in EVCSs with the goal of maximizing the social welfare. It is shown that the market solution underinvests EVCSs, leading to slower EV diffusion. The effects of subsidies for EV purchase and EVCSs are also considered.     

Estimating the demand for electric automobiles using fully disaggregated probabilistic choice analysis

This study uses probabilistic choice models to predict potential demand for electric cars. Survey data are employed to estimate separate utility functions for each of 51 subjects. This provides a sample distribution of consumer preferences for vehicle attributes including price, operating cost and range. The results indicate great diversity in individual trade-offs among attributes, with range and top speed generally being highly valued. The sample of utility functions is then used to predict potential market shares for various kinds of electric vehicles as second cars. Demand is quite limited, except when (a) electric cars are considerably more advanced than anything likely to be available in the near future, and (b) consumers fear massive gasoline shortages. The latter effect derives from an observed “bias” in favor of electric autos, which is plausibly interpreted as a hedge against disruptions in the gasoline market.     

The impact of car specifications,prices and incentives for battery electric vehicles in Norway: Choices of heterogeneous consumers

Electric vehicles (EVs), specifically Battery EVs (BEVs), can offer significant energy and emission savings over internal combustion engine vehicles. Norway has a long history of research and government incentives for BEVs. The BEV market in Norway allows us to fully examine consumers’ BEV choices influenced by car specifications, prices and government incentives (public bus lanes access, toll waiver and charging stations). The Random-Coefficient Discrete Choice Model (referred to as the BLP model) is applied to understand the choices of heterogeneous personal consumers and business buyers. Our study is instantiated on the entire EV sales data in Norway from 2011 to 2013, as well as a set of demographics at the municipality level. The results suggest significant positive effects of BEV technology improvement, space, toll waiver and charging station density on EV demand for both personal consumers and business buyers. However, the effects on business buyers may be generally less pronounced than on personal consumers. Interestingly, bus lanes access demonstrates a negative impact for personal consumers, possibly due to consumers’ concern regarding bus lane congestion. In addition, preferences on the BEV price can vary statistically among consumers with different income levels. Compared to the BEV technology development, demographical features and municipal incentives may have generally less impacts on market shares within the BEV market.     

Impact of government incentives on the market penetration of electric vehicles in Australia

Incentives to buy and use electric vehicles (EVs) may influence individuals’ decisions to do so. To examine these impacts, a latent class discrete choice model is developed to analyse consumer preferences related to EV attributes and related government incentives. Data was collected from a stated preference survey of 1,076 residents of New South Wales (NSW), Australia. According to the results, the proposed latent constructs classify respondents into five segments. The segments are then used to distinguish respondent behaviours regarding EV attributes and related government incentives. The results show that rebate on the upfront cost of an EV is the most preferred one-off financial incentive, because EVs are expected to be expensive, especially in Australia which has a very small EV market at present. Furthermore, rebates on energy bills and parking fees are also well-received, as these things are expensive in Sydney, Australia. Thus, operational incentives for discounts on energy bills and parking fees may facilitate the success of EVs in NSW.     

Consumers’ willingness to pay for alternative fuel vehicles: A comparative discrete choice analysis between the US and Japan

This paper conducts a comparative discrete choice analysis to estimate consumers’ willingness to pay (WTP) for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) on the basis of the same stated preference survey carried out in the US and Japan in 2012. We also carry out a comparative analysis across four US states. We find that on average US consumers are more sensitive to fuel cost reductions and alternative fuel station availability than are Japanese consumers. With regard to the comparative analysis across the four US states, consumers’ WTP for a fuel cost reduction in California is considerably greater than in the other three states. We use the estimates obtained in the discrete choice analysis to examine the EV/PHEV market shares under several scenarios. In a base case scenario with relatively realistic attribute levels, conventional gasoline vehicles still dominate both in the US and Japan. However, in an innovation scenario with a significant purchase price reduction, we observe a high penetration of alternative fuel vehicles both in the US and Japan. We illustrate the potential use of a discrete choice analysis for forward-looking policy analysis, with the future opportunity to compare its predictions against actual revealed choices. In this case, increased purchase price subsidies are likely to have a significant impact on the market shares of alternative fuel vehicles.     

Who will buy electric vehicles? Identifying early adopters in Germany

Electric vehicles (EVs) have noteworthy potential to reduce global and local emissions and are expected to become a relevant future market for vehicle sales. Both policy makers and car manufacturers have an interest to understand the first large EV user group, frequently referred to as ‘early adopters’. However, there are only a few empirical results available for this important group. In this paper, we analyse and discuss several empirical data sets from Germany, characterising this user group from both a user and a product perspective, i.e. who is willing to buy an EV and who should buy one. Our results show that the most likely group of private EV buyers in Germany are middle-aged men with technical professions living in rural or suburban multi-person households. They own a large share of vehicles in general, are more likely to profit from the economical benefits of these vehicles due to their annual vehicle kilometres travelled and the share of inner-city driving. They state a higher willingness to buy electric vehicles than other potential adopter groups and their higher socio-economic status allows them to purchase EVs. In contrast to this, inhabitants of major cities are less likely to buy EVs since they form a small group of car owners in general, their mileage is too low for EVs to pay off economically and they state lower interest and lower willingness to pay for EVs than other groups. Our results indicate that transport policy promoting EVs should focus on middle-aged men with families from rural and sub-urban cities as first private EV buyers.     

Consumer valuation of changes in driving range: A meta-analysis

We perform a meta-analysis of studies investigating consumer preferences for electric and other alternative fuel vehicles (AFVs) to provide insights into the way driving range is traded off for capital costs. We find that consumers are willing to pay, on average, between 66 and 75 US$ for a 1-mile increase in driving range. Ceteris paribus, 100-mile-range cars have to be priced about 60% less than their conventional counterparts to become competitive. In line with intuition, but in contrast to most specifications employed in primary studies, we find that consumers’ marginal willingness to pay (WTP) decreases at a diminishing rate with increases in driving range. The variation in the WTP and compensating variation estimates among examined studies can be attributed to differences in the levels of driving range considered, in other elements of the study design and in the country of study. Our findings support stated preference literature’s conclusion that short driving range has been a major limitation to the large-scale adoption of battery electric vehicles (BEVs) and other AFVs, and that technological developments permitting longer driving ranges will, to some extent, facilitate their market penetration. We further propose that consumer valuation of driving range should not be examined in isolation from other attributes related to refuelling activities, such as refuelling duration and the coverage of refuelling infrastructure.     

Electric vehicles revisited: a review of factors that affect adoption

Electric vehicles (EVs) were recently reintroduced to the global car market. These are an improvement over their predecessors in performance and electric driving range. Although the uptake of EVs has been notable in a short period of time, most government goals for adoption have not been met. This paper reviews a growing body of peer-reviewed literature assessing factors affecting EV adoption. Several important gaps in knowledge are identified. First, there is mixed evidence of the effectiveness of government incentives in encouraging EV uptake and particularly little knowledge in regards to issues of timing and magnitude. The literature shows that public charging infrastructure is an important factor associated with EV uptake, though the direction of causality is yet unclear. Public charging infrastructure can ease range anxiety, particularly for battery electric vehicles, but there is little guidance as to the way in which government should best go about ensuring the provision of infrastructure. Lastly, the nascent EV market means that studies primarily rely on surveys about hypothetical situations. There is strong evidence that actual purchases are much lower than consumers’ stated preferences. Improving understanding of this “attitude–action” gap is important to better informing studies of EV uptake over time.     

How experience of use influences mass-market drivers’ willingness to consider a battery electric vehicle: A randomised controlled trial

Uptake of electric vehicles (EVs) by consumers could reduce CO₂ emissions from light duty road transport, but little is known about how mass-market consumer drivers will respond to them. Self-Congruity theory proposes that products are preferred whose symbolic meanings are congruent with personal identity. Further, Construal Level theory suggests that only those who are psychologically close to a new product category through direct experience with it can make concrete construals related to their lifestyles; most drivers lack this for EVs. For instance, potential performance benefits of EVs might offset range limitations for consumers who have such direct experience. The effect of direct experience was tested in a randomised controlled trial with 393 mass-market consumer drivers. An experimental group were given direct experience of a modern battery electric vehicle (BEV), and a control group an equivalent conventional car. Despite rating the performance of the BEV more highly than that of the conventional car, willingness to consider a BEV declined after experience, particularly if the range of the BEV considered was short. The participants willing to consider a short-range BEV were those high in self-congruity, for whom the BEV could act as a strong symbol of personal identity.     

Consumer preferences for electric vehicles: a literature review

Widespread adoption of electric vehicles (EVs) may contribute to the alleviation of problems such as environmental pollution, global warming and oil dependency. However, the current market penetration of EV is relatively low in spite of many governments implementing strong promotion policies. This paper presents a comprehensive review of studies on consumer preferences for EV, aiming to better inform policy-makers and give direction to further research. First, we compare the economic and psychological approach towards this topic, followed by a conceptual framework of EV preferences which is then implemented to organise our review. We also briefly review the modelling techniques applied in the selected studies. Estimates of consumer preferences for financial, technical, infrastructure and policy attributes are then reviewed. A categorisation of influential factors for consumer preferences into groups such as socio-economic variables, psychological factors, mobility condition, social influence, etc. is then made and their effects are elaborated. Finally, we discuss a research agenda to improve EV consumer preference studies and give recommendations for further research.

Abbreviations: AFV: alternative fuel vehicle; BEV: battery electric vehicle; CVs: conventional vehicles; EVs: electric vehicles; FCV: fuel cell vehicle; HCM: hybrid choice model; HEV: hybrid electric vehicle (non plug-in); HOV: high occupancy vehicle; MNL: MultiNomial logit; MXL: MiXed logit model; PHEV: plug-in hybrid electric vehicle; RP: revealed preference; SP: stated preference.     

Heterogeneous consumer preferences for alternative fuel cars in China

This paper models consumer preferences for alternative fuel cars and conventional, petrol fueled cars in China. It compares discrete choice model specifications where each specification reflects how consumers choose between alternative fuel cars and conventional types of cars. We find that, in China, consumers differentiate between the types of alternative fuel cars and are more likely to consider switching from petrol fuel vehicles to hybrid than to electric cars. Segmentation analysis is used to explore groups of consumers and their likelihood of adopting alternative fuel cars.     

The relative importance of price and driving range on electric vehicle adoption: Los Angeles case study

Electric vehicles (EVs) are still a maturing technology. Barriers to their adoption include price and range anxiety. EV batteries are significant in determining both EV prices and costs. In this work, we focus on the impact of a high-capacity battery and EV rebates on an EV ecosystem. Using survey data from Los Angeles, California, we simulate different cases of battery costs and prices by means of an agent-based EV ecosystem model. We find that even in Los Angeles, a geographically spread out city, the price of EVs is a more significant barrier to adoption than EV range. In fact, even a quintupling of battery size at no additional costs improves EV adoption by only 5 %. Therefore, policy makers should focus more on affordability than range in promoting EV adoption.     

A two-sided market platform analysis for the electric vehicle adoption: Firm strategies and policy design

This study explores how to facilitate the electric vehicle (EV) diffusion from a two-sided market platform competition. We develop a stylized model depicting the platform competition between electric and gasoline vehicles by combining indirect network effects of consumer and energy supplier sides as well as vehicle manufacturers’ profits. The findings of this study provide several meaningful strategic and policy implications for EV manufacturers and policymakers who wish to enhance EV diffusion. First, EV sales are significantly influenced by indirect network effects from the energy supplier side to the consumer side, and vice versa. This implies that EV manufacturers who wish to boost EV diffusion should implement a strategy providing energy suppliers with incentives to willingly join the EV platform. Second, the dynamic nature of the effects of energy costs on platform competition might render counter-intuitive evidence that the drop in oil prices does not always negatively influence EV sales. This requires EV manufacturers to prepare a contingent strategy adjusting to such unexpected conditions. Third, governments should consider the energy supplier side as well as the consumer side in designing EV diffusion policies. When governments have a very challenging EV diffusion target, a balanced policy, which treats both gasoline and electric vehicle technologies fairly, may be more effective than a consumer subsidy policy.     

Advances in consumer electric vehicle adoption research: A review and research agenda

In spite of the purported positive environmental consequences of electrifying the light duty vehicle fleet, the number of electric vehicles (EVs) in use is still insignificant. One reason for the modest adoption figures is that the mass acceptance of EVs to a large extent is reliant on consumers’ perception of EVs. This paper presents a comprehensive overview of the drivers for and barriers against consumer adoption of plug-in EVs, as well as an overview of the theoretical perspectives that have been utilized for understanding consumer intentions and adoption behavior towards EVs. In addition, we identify gaps and limitations in existing research and suggest areas in which future research would be able to contribute.